Just discovered I qualify for QBI deduction but never claimed it - can I amend returns back to 2018?

The good news is that you still have time to amend returns to claim the QBI deduction you missed! The IRS allows you to file amended returns (Form 1040-X) going back three years from the original filing date, so you could potentially amend returns for tax years 2021, 2022, and 2023. Unfortunately, 2018-2020 would be beyond the statute of limitations unless you had filing extensions that might give you a little more time. If your business income has been around $17,500, calculating the QBI deduction should be fairly straightforward since you're well below the income thresholds where it gets complicated. The basic calculation would give you a deduction of up to 20% of your qualified business income, which could mean significant refunds. Yes, the IRS will issue refunds for the years you're still able to amend, typically with interest! For a sole proprietor with relatively simple returns, you might be able to handle the amendments yourself using tax software or the IRS forms directly.

After missing out on some deductions a few years ago, I found https://taxr.ai incredibly helpful for catching things I missed. It reviews your past returns to find missed deductions like QBI and other tax savings. I uploaded my old returns and it flagged several missed opportunities, including QBI that I qualified for as a small business owner but never claimed. The nice thing is it creates a detailed report showing exactly what you missed and how to properly file the amendments. I was in a similar situation with a small business income (around $20k annually) and it helped me reclaim nearly $1,500 across two years of missed QBI deductions.

Just wanted to update after trying taxr.ai that someone mentioned above. It was actually super helpful with my QBI situation! I uploaded my last three years' returns and it immediately flagged that I had missed the QBI deduction on all of them. The report broke down exactly how much I could claim for each year and pointed out that I was also missing some home office deductions. The instructions for filing the amendments were really clear. I was nervous about doing amendments but decided to follow their guidance and file them myself. Just got confirmation that my first amended return was accepted, and I should be getting about $870 back just from that year! Definitely worth checking out if you're in a similar situation with missed deductions.

If you're thinking about amending multiple years of returns, you might want to try using Claimyr (https://claimyr.com) to actually speak with an IRS agent about your specific situation before filing. I spent WEEKS trying to get through to the IRS about amending multiple years for missed deductions, but kept getting disconnected or hitting excessive wait times. Claimyr got me connected to an actual IRS representative in about 15 minutes who confirmed exactly which years I could still amend and what documentation I needed to include. They have a good demo video of how it works here: https://youtu.be/_kiP6q8DX5c It saved me from making a mistake on my amendments that could have delayed my refunds by months. The IRS agent also told me I could request an abatement of penalties since I had a reasonable cause for the amendments (not knowing about the deduction).

I need to eat some humble pie here. After my skeptical comment about Claimyr, I decided to try it myself since I've been trying unsuccessfully to reach the IRS for weeks about my own amendment questions. I'm shocked to report it actually worked exactly as advertised. I was connected to an IRS agent in about 20 minutes (compared to my previous failed attempts waiting 2+ hours). The agent walked me through exactly which forms I needed for amending missed QBI deductions and confirmed that I could only go back three tax years. She also mentioned that I should expect about an 8-12 week processing time for the amendments. For anyone like the original poster wanting to amend for missed QBI, getting that direct confirmation from the IRS before filing saved me a ton of uncertainty. I hate admitting when I'm wrong, but in this case I definitely was!

Something to consider - make sure you check if claiming QBI might affect any other credits or deductions you received. When I amended my returns for missed QBI, it changed my AGI which ended up reducing my earned income credit slightly. The overall benefit was still positive, but it wasn't quite as much as I initially calculated. Also, if you file paper amendments (which is required for 1040-X in many cases), be prepared for LONG processing times. My amendments from last year took nearly 9 months to process. The IRS is seriously backlogged with paper processing.

Just a reminder that if you're self-employed and amending returns to claim QBI, don't forget about retirement planning too! You might want to look into setting up a SEP IRA or Solo 401(k) for future tax years. I missed QBI for 2 years but learning about it led me to discover other tax benefits for self-employed people that saved me way more in the long run. The QBI deduction is set to expire after 2025 unless Congress extends it, so make sure you're claiming it while you can. Also worth noting that some states don't recognize the QBI deduction on state returns, so your state tax situation might not change even with amendments.

You're absolutely right to be excited about discovering QBI - it can make a real difference! Since you mentioned being comfortable with tax forms, I'd suggest starting with the 2021-2023 amendments yourself first. The QBI calculation is straightforward at your income level, and Form 8995 really does walk you through it step by step. One thing to double-check: if you were filing as a partnership with K-1s during some of those years, make sure you understand how QBI flows through on those returns versus your sole proprietor years. The deduction might be calculated differently depending on your filing structure for each year. Also, consider batching your amendments strategically. File one year first to get familiar with the process, then do the others. This way if the IRS has any questions about your first amendment, you can apply those lessons to the remaining years. And definitely keep detailed records of everything you send - make copies and use certified mail if filing paper returns. The potential refunds plus interest could really help with your financial situation, so it's worth the effort to get these filed properly!

One thing I haven't seen mentioned yet is that you should double-check whether your business activities actually qualify for QBI. The deduction applies to qualified trade or business income, but there are some exceptions. Most sole proprietorship activities qualify, but things like performing services as an employee or certain investment activities might not. Also, since you mentioned your income has been around $17,500 annually, you're well below the taxable income thresholds where QBI gets limited by W-2 wages or basis of property, so the calculation should indeed be straightforward - just 20% of your qualified business income. For the partnership years, the QBI would have flowed through to your personal return via the K-1, so you'd still claim it on your individual 1040 using Form 8995. The partnership itself doesn't claim the QBI deduction. Given the amounts involved and your comfort level with taxes, I'd definitely try doing the amendments yourself first. At your income level, you're looking at roughly $3,500 per year in QBI deductions (20% of $17,500), which could mean significant refunds especially if you were in the 12% or 22% tax brackets. That's potentially over $1,000 in refunds for the three years you can still amend, plus interest!